Tyre companies hope for 'achhe din' with fall in Chinese imports

Imports of truck and bus radials have dropped by around 50% to 75,000 tonnes a month after the government imposed anti-dumping duty in September.PK Krishnakumar | ET Bureau | December 30, 2017, 11:55 IST

KOCHI: A slowdown in import of Chinese tyres and improved automobile sales in the last couple of months have lifted the hopes of the Indian tyre industry, which is expecting a growth in the last quarter of the fiscal after a prolonged downturn.

Imports of truck and bus radials (TBR) have dropped by around 50% to 75,000 tonnes a month after the government imposed anti-dumping duty in September, according to tyre industry body Automotive Tyre Manufacturers’ Association (Atma).

The local market has also shown signs of revival after a long time. “Truck and bus tyre sales are looking up,” said Rajiv Budhraja, director general of Atma. “Passenger cars have been steady performer in the last few months. The replacement and OE segment of the vehicles are doing well,” he said. Budhraja, however, pointed out that the improvement is against a low base of a year ago.

The country’s tyre industry has been on a downturn in the last couple of years due to various reasons, including demonetisation, shift to BS-4 emission norms, GST, and import of Chinese tyres.

Prices of natural rubber, chief raw material of the tyre industry, have been hovering at a lower level. But in the last couple of months, supply tightness has forced the tyre firms to depend more on rubber imports.

"The extended rains interfered with tapping in October and November,” said George Valy, a rubber dealer. "It has resumed in full swing this month. But still some of the tyre companies are not willing to buy at current market prices,” he said.The loss of tapping days due to rains may lead extension of tapping period into March, provided weather is favourable, Valy said.

Imports of truck and bus radials fell by 50% in a month after govt imposed anti-dumping duty in September.

​​This comes as a surprise to the industry as Rakesh was recently elevated to the position of Directo Sales and Marketing which was the third promotion for him in six years of his tenure in the company.